Insurance claim against a building developer.

factfinding8888

We have an open insurance claim against a building developer who damaged our home. We have substantial evidence that it was their fault, including twelve holes drilled through our wall from the other side. No Party Wall Acts were put in place by the developer. In addition, no surveyor was used by them to look at our property before starting work. My question is whether the insurance claim will affect their ability to sell the property? It's been 6 months since a loss adjuster came to visit us  to assess the damage and whilst we have been living in a damaged house the developer has completed most works and is now decorating the adjoining property ready for sale. We also have a solicitor helping with the matter.

Thanks in advance!

factfinding8888

To clarify - it's their insurance not ours.

DullGreyGuy

The claim won't impact their ability to sell the property, 

factfinding8888

Thanks, will it effect the price that they can sell it for?

caprikid1

"Thanks, will it effect the price that they can sell it for?"

Far from enough detail to say but unless it's subsidence I highly doubt it

DullGreyGuy

factfinding8888 said:

Thanks, will it effect the price that they can sell it for?

You dont say what's really happened but assuming they just did some damage to your property in the process of constructing the neighbouring property then no it won't impact sales price. If they damaged both properties then it will come down to the quality of the repairs. 

factfinding8888

OK thanks. I read somewhere that having an open insurance claim against a property would potentially devalue the price, up to 30%, for a prospective buyer. 

MattMattMattUK

factfinding8888 said:

OK thanks. I read somewhere that having an open insurance claim against a property would potentially devalue the price, up to 30%, for a prospective buyer. 

The insurance claim is not against the property, it is against the developer/builder. 

factfinding8888

MattMattMattUK said:

factfinding8888 said:

OK thanks. I read somewhere that having an open insurance claim against a property would potentially devalue the price, up to 30%, for a prospective buyer. 

The insurance claim is not against the property, it is against the developer/builder. 

Yes, that's correct, but the developer owns the building. 

DullGreyGuy

factfinding8888 said:

MattMattMattUK said:

factfinding8888 said:

OK thanks. I read somewhere that having an open insurance claim against a property would potentially devalue the price, up to 30%, for a prospective buyer. 

The insurance claim is not against the property, it is against the developer/builder. 

Yes, that's correct, but the developer owns the building. 

An "on going claim" against a property would mean the property is still damaged or undergoing monitoring (eg for subsidence). Clearly if underpinning is still being done or they're monitoring to see if removing a tree stopped the subsidence then that would impact the potential sale price because you are buying a big unknown. It's not logical that still needing to paint a ceiling after an escape of water claim would knock £150,000 off a £500,000 home. 

In this case the buyer isn't getting any of the problems, no different to if a postman was suing the prior owners for falling over an uneven paving slab... the problem remains with the person at fault not the property itself so has no impact on the property price. 

user1977

factfinding8888 said:

MattMattMattUK said:

factfinding8888 said:

OK thanks. I read somewhere that having an open insurance claim against a property would potentially devalue the price, up to 30%, for a prospective buyer. 

The insurance claim is not against the property, it is against the developer/builder. 

Yes, that's correct, but the developer owns the building. 

They won't do after they sell it. Your claim is still against the developer, not the new owner.